Stifel Upgrades Xponential Fitness Inc (XPOF) to Buy, 'Upside Less of a Stretch'

Stifel analyst Chris O'Cull upgraded Xponential Fitness Inc (NYSE: XPOF) from Hold to Buy with a price target of $18.00.

The analyst comments "XPOF's share price has fallen 33% during the past week following a negative Bloomberg article and an 8-K filing stating the SEC has requested that the Company provide it with certain documents. The SEC request appears to relate to calculations of non-GAAP KPIs the company provides in its filings. We believe the reaction is a classic example of shooting first and asking questions later. In this note, we discuss some key investor concerns and potential outcomes and solutions that could serve as a catalyst for shares. In our view, this highly franchised business's valuation (~6x EV/EBITDA NTM) reflects overly negative short-term sentiment rather than significant fundamental issues. And, if shares were to languish long at the current level, we would not be surprised if management rolled their equity and partnered with another investor to take the company private. We like the current risk/reward, so we upgrading to Buy."

For an analyst ratings summary and ratings history on Xponential Fitness Inc click here. For more ratings news on Xponential Fitness Inc click here.

Shares of Xponential Fitness Inc closed at $9.22 yesterday.

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